IDEAS home Printed from https://ideas.repec.org/p/bzn/wpaper/bemps24.html
   My bibliography  Save this paper

Well-Paid Nurses are Good Nurses

Author

Listed:
  • Alessandro Fedele

    (Free University of Bolzano‐Bozen, Faculty of Economics and Management)

Abstract

Some recent articles suggest that increasing wage in the nursing market with the aim of reducing shortage may yield a negative effect on the average ability and motivation of applicants attracted and, in turn, on the average quality of care. This finding is at odds with empirical evidence and has been criticized on the grounds that nurses' motivation is modeled in an overly simplistic way. The present paper provides a novel theoretical framework where the orientation of nurses' motivation - intrinsic versus extrinsic - is taken into account, and the precise distinction between intrinsic and extrinsic motivation is delineated on the basis of self-determination and person-environment fit theories. Findings show that high wages attract able and motivated individuals, thus maximizing the average quality of care. This result reconciles theory with evidence.

Suggested Citation

  • Alessandro Fedele, 2015. "Well-Paid Nurses are Good Nurses," BEMPS - Bozen Economics & Management Paper Series BEMPS24, Faculty of Economics and Management at the Free University of Bozen.
  • Handle: RePEc:bzn:wpaper:bemps24
    as

    Download full text from publisher

    File URL: https://repec.unibz.it/bemps24.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Heyes, Anthony G., 2007. "Optimal wages in the market for nurses," Journal of Health Economics, Elsevier, vol. 26(5), pages 1031-1033, September.
    2. Taylor, Lowell J., 2007. "Optimal wages in the market for nurses: An analysis based on Heyes' model," Journal of Health Economics, Elsevier, vol. 26(5), pages 1027-1030, September.
    3. Heyes, Anthony, 2005. "The economics of vocation or 'why is a badly paid nurse a good nurse'?," Journal of Health Economics, Elsevier, vol. 24(3), pages 561-569, May.
    4. Josse Delfgaauw & Robert Dur, 2008. "Incentives and Workers' Motivation in the Public Sector," Economic Journal, Royal Economic Society, vol. 118(525), pages 171-191, January.
    5. Bruni, Luigino & Sugden, Robert, 2008. "Fraternity: Why The Market Need Not Be A Morally Free Zone," Economics and Philosophy, Cambridge University Press, vol. 24(1), pages 35-64, March.
    6. Timothy Besley & Maitreesh Ghatak, 2005. "Competition and Incentives with Motivated Agents," American Economic Review, American Economic Association, vol. 95(3), pages 616-636, June.
    7. Stephen Nickell & Glenda Quintini, 2002. "The Consequences of The Decline in Public Sector Pay in Britain: A Little Bit of Evidence," Economic Journal, Royal Economic Society, vol. 112(477), pages 107-118, February.
    8. Massimiliano Landi & Antonio Merlo & Vincenzo Galasso & Andrea Mattozzi, 2008. "The Labor Market of Italian Politicians," Labor Economics Working Papers 22461, East Asian Bureau of Economic Research.
    9. Ferraz, Claudio & Finan, Frederico S., 2008. "Motivating Politicians: The Impacts of Monetary Incentives on Quality and Performance," IZA Discussion Papers 3411, Institute of Labor Economics (IZA).
    10. Valerie Adams & Julie Nelson, 2009. "The Economics of Nursing: Articulating Care," Feminist Economics, Taylor & Francis Journals, vol. 15(4), pages 3-29.
    11. Carol Propper & John Van Reenen, 2010. "Can Pay Regulation Kill? Panel Data Evidence on the Effect of Labor Markets on Hospital Performance," Journal of Political Economy, University of Chicago Press, vol. 118(2), pages 222-273, April.
    12. Ernesto Dal Bó & Frederico Finan & Martín A. Rossi, 2013. "Strengthening State Capabilities: The Role of Financial Incentives in the Call to Public Service," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 1169-1218.
    13. Di Tommaso, M.L. & Strøm, S. & Sæther, E.M., 2009. "Nurses wanted: Is the job too harsh or is the wage too low?," Journal of Health Economics, Elsevier, vol. 28(3), pages 748-757, May.
    14. Raymond Fisman & Nikolaj A. Harmon & Emir Kamenica & Inger Munk, 2015. "Labor Supply Of Politicians," Journal of the European Economic Association, European Economic Association, vol. 13(5), pages 871-905, October.
    15. Chiha, Yvana A. & Link, Charles R., 2003. "The shortage of registered nurses and some new estimates of the effects of wages on registered nurses labor supply: a look at the past and a preview of the 21st century," Health Policy, Elsevier, vol. 64(3), pages 349-375, June.
    16. repec:iza:izawol:journl:y:2015:p:138 is not listed on IDEAS
    17. Banuri, Sheheryar & Keefer, Philip, 2016. "Pro-social motivation, effort and the call to public service," European Economic Review, Elsevier, vol. 83(C), pages 139-164.
    18. Nancy Folbre, 1995. ""Holding hands at midnight": The paradox of caring labor," Feminist Economics, Taylor & Francis Journals, vol. 1(1), pages 73-92.
    19. Bruno S. Frey, 1997. "Not Just for the Money," Books, Edward Elgar Publishing, number 1183.
    20. Francesca Barigozzi & Gilberto Turati, 2012. "Human health care and selection effects. Understanding labor supply in the market for nursing," Health Economics, John Wiley & Sons, Ltd., vol. 21(4), pages 477-483, April.
    21. George A. Akerlof & Rachel E. Kranton, 2005. "Identity and the Economics of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 9-32, Winter.
    22. Boeri, Tito & Merlo, Antonio & Prat, Andrea (ed.), 2010. "The Ruling Class: Management and Politics in Modern Italy," OUP Catalogue, Oxford University Press, number 9780199588282.
    23. Nancy Folbre & Julie A. Nelson, 2000. "For Love or Money--Or Both?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 123-140, Fall.
    24. Mirco Tonin, 2020. "Are workers motivated by the greater good?," IZA World of Labor, Institute of Labor Economics (IZA), pages 138-138, July.
    25. Valerie Adams & Rhonda Sharp, 2013. "Reciprocity in Caring Labor: Nurses’ Work in Residential Aged Care in Australia," Feminist Economics, Taylor & Francis Journals, vol. 19(2), pages 100-121, April.
    26. Stefano Gagliarducci & Tommaso Nannicini, 2013. "Do Better Paid Politicians Perform Better? Disentangling Incentives From Selection," Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 369-398, April.
    27. Nelson, Julie A., 2009. "A Response To Bruni And Sugden," Economics and Philosophy, Cambridge University Press, vol. 25(2), pages 187-193, July.
    28. James Buchan & Steven Black, 2011. "The Impact of Pay Increases on Nurses' Labour Market: A Review of Evidence from Four OECD Countries," OECD Health Working Papers 57, OECD Publishing.
    29. Buhr, Karen J., 2009. "An economic analysis of the job search decisions for Canadian nurses," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 129-137, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Juliana Bernhofer & Alessandro Fedele & Mirco Tonin, 2022. "Wage Expectations and Access to Healthcare Occupations: Evidence from an Information Experiment," BEMPS - Bozen Economics & Management Paper Series BEMPS95, Faculty of Economics and Management at the Free University of Bozen.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barigozzi, Francesca & Burani, Nadia & Raggi, Davide, 2018. "Productivity crowding-out in labor markets with motivated workers," Journal of Economic Behavior & Organization, Elsevier, vol. 151(C), pages 199-218.
    2. Barigozzi, Francesca & Raggi, Davide, 2013. "The Lemons Problem in a Labor Market with Intrinsic Motivation," AICCON Working Papers 123-2013, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    3. Rebitzer, James B. & Taylor, Lowell J., 2011. "Extrinsic Rewards and Intrinsic Motives: Standard and Behavioral Approaches to Agency and Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 8, pages 701-772, Elsevier.
    4. A. Fedele & P. Giannoccolo, 2013. "Moneycracy," Working Papers wp893, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. Barigozzi, Francesca & Parasnis, Jaai & Tani, Massimiliano, 2022. "Gender, Motivation, and Self-Selection into Teaching," IZA Discussion Papers 15532, Institute of Labor Economics (IZA).
    6. Braendle, Thomas, 2013. "Do Institutions Affect Citizens' Selection into Politics?," Working papers 2013/04, Faculty of Business and Economics - University of Basel.
    7. Schweri, Juerg & Hartog, Joop, 2017. "Do wage expectations predict college enrollment? Evidence from healthcare," Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 135-150.
    8. Alessandro Fedele & Pierpaolo Giannoccolo, 2020. "Paying Politicians: Not Too Little, Not Too Much," Economica, London School of Economics and Political Science, vol. 87(346), pages 470-489, April.
    9. F. Barigozzi & N. Burani & D. Raggi, 2013. "The Lemons Problem in a Labor Market with Intrinsic Motivation. When Higher Salaries Pay Worse Workers," Working Papers wp883, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Karsten Mause, 2014. "Self-serving legislators? An analysis of the salary-setting institutions of 27 EU parliaments," Constitutional Political Economy, Springer, vol. 25(2), pages 154-176, June.
    11. Fabio Padovano, 2013. "Are we witnessing a paradigm shift in the analysis of political competition?," Public Choice, Springer, vol. 156(3), pages 631-651, September.
    12. Barigozzi, Francesca & Burani, Nadia, 2019. "Competition for talent when firms' mission matters," Games and Economic Behavior, Elsevier, vol. 116(C), pages 128-151.
    13. Nava Ashraf & Oriana Bandiera & Scott Lee, 2014. "Do-gooders and go-getters: career incentives, selection, and performance in public service delivery," STICERD - Economic Organisation and Public Policy Discussion Papers Series 54, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    14. Farzin, Y.H., 2009. "The effect of non-pecuniary motivations on labor supply," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(4), pages 1236-1259, November.
    15. Thomas Braendle, 2015. "Does remuneration affect the discipline and the selection of politicians? Evidence from pay harmonization in the European Parliament," Public Choice, Springer, vol. 162(1), pages 1-24, January.
    16. Nadia Burani, 2021. "No mission? No motivation. On hospitals' organizational form and charity care provision," Health Economics, John Wiley & Sons, Ltd., vol. 30(12), pages 3203-3219, December.
    17. Delfgaauw, Josse & Souverijn, Michiel, 2016. "Biased supervision," Journal of Economic Behavior & Organization, Elsevier, vol. 130(C), pages 107-125.
    18. Thomas Braendle & Alois Stutzer, 2017. "Voters and Representatives: How Should Representatives Be Selected?," CREMA Working Paper Series 2017-05, Center for Research in Economics, Management and the Arts (CREMA).
    19. Bauer, Kevin & Kosfeld, Michael & von Siemens, Ferdinand, 2021. "Incentives, Self-Selection, and Coordination of Motivated Agents for the Production of Social Goods," IZA Discussion Papers 14595, Institute of Labor Economics (IZA).
    20. Mikel Berdud & Juan M. Cabasés Hita & Jorge Nieto, 2012. "Motivational Capital and Incentives in Health Care Organisations," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 1209, Departamento de Economía - Universidad Pública de Navarra.

    More about this item

    Keywords

    Nurses' wage; nurses' ability; nurses' motivation; quality of care; self-determination and person-environment fit theories;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bzn:wpaper:bemps24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: F. Marta L. Di Lascio or Alessandro Fedele (email available below). General contact details of provider: https://edirc.repec.org/data/feubzit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.